Mayor Lurie's 'housing' tax cut also helps S.F. office landlords - who don't build housing

"We will create the jobs and build the homes that San Franciscans deserve. If the Board of Supervisors approves the tax cut, the tax rate for properties worth more than $10 million will go from 5.75 percent to 2.75 percent and those over $25 million will go from 6 percent to 3 percent."

"This tax abatement is probably the largest single thing that can be done right now. Housing developer Eric Tao estimated that the proposal would reduce costs for large apartment buildings by around $33,000 per unit. That will directly help housing projects get financed, he said."

"Many say that the cuts are too broad, and that the tax could have been more narrowly tailored to boost housing construction even more. That's because it's not just a tax cut for new housing - but for almost all real estate."

San Francisco Mayor Daniel Lurie introduced legislation to reduce transfer taxes on high-value real estate sales, lowering rates from 5.75% to 2.75% for properties over $10 million and from 6% to 3% for those exceeding $25 million. The proposal effectively repeals Proposition I, a 2020 voter-approved measure. Lurie argues the current tax rate inhibits housing development and keeps construction workers idle. The city faces a $936 million budget deficit and would forgo significant tax revenue. Developers support the measure, with some estimating it would reduce costs by approximately $33,000 per unit for large apartment buildings. However, critics contend the tax cut is too broad, applying to nearly all real estate rather than being narrowly tailored specifically for new housing construction.

Read at Mission Local